Risks to projects

Running head : Project risk

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PROJECT RISK

Basically , the term project refers to a particular activity which has a defined start and the end and consumes considerable amount of time and resources . Projects are however faced by some risks which may lead to the termination of the same . By definition , project risk refers to the probability that one may suffer losses which are rather unpredictable For this particular essay we shall focus on the risks associated with a software development project (Frame , 2002

. Precisely , we shall focus on the schedule risks , budget risk , operational risk , technical risk and the programmatic risks

To start with we have the programmatic risks whose origin is mainly from external sources . For instance , changes in government policies changes in the customer product strategy and changes in the market structure for the intended product are some of the external forces that contribute to the programmatic risks . Their nature of being external makes it impossible for a project manager to predict and control them Secondly , we have the technical risks which bring to a halt any software development project which may have been initiated without adequate planning (Lauren , 2008 . In most cases , lack of appropriate technology changes in operational requirements and complexity of the procedures involved in the project leads to the failure of a project in terms of functionality and performance

A software development project can also be faced with budget risks Such risks arise when the project cost accountant understates the...